Refinancing To Save Homes With The Federal Mortgage Refinance Plan

One of the making home affordable programs is the home affordable refinance plan or HARP

. Typically, the HARP offers low interest rate home refinancing loans to assist borrowers in reducing their monthly mortgage payments drastically. Therefore, homeowners, who could be struggling to deal with the rising burden of their existing mortgage debts, could take advantage of the HARP plan and save their precious homes from getting foreclosed. Besides, as monthly installments would decrease substantially, home makers could be even able to save hundreds of dollars every month over the long run. Nevertheless, to derive the benefits of low rate HARP mortgage refinancing, applicants could be needed to meet few eligibility guidelines which are complicated to understand and hard to interpret.

To qualify for the lowest home refinance rates with the HARP program, one may need to satisfy the below mentioned basic conditions.

1. Homes for which mortgages are to be refinanced must necessarily have to be primary residences and not investment properties.

2. Only those borrowers could be eligible for HARP whose existing home mortgage loans are backed by Fannie Mae or Freddie Mac.

3. Borrower is needed to be current in paying the monthly installments for the past 12 months with a default not exceeding 30 days.

4. Unpaid mortgage balances on present loans cannot exceed $729,750 for a 1 unit family home. Limit can be more for 2, 3 or 4 units.

5. Present home mortgage should have been sold to Fannie Mae or Freddie Mac on or before 31st May 2009.

Qualifying for the federal mortgage refinance plan might not be that easy even if you fulfill the primary requirements stated above. In the past many HARP applications have got denied on account of improper, inaccurate or incorrect documentation. Hence, to improve your chances of being HARP approved, it could be essential for you to make sure that you have prepared correct and accurate documents that are needed to be submitted along with your HARP request. Besides, there could be certain Debt-To-Income (DTI) requirements which need to be satisfied and applicants could be even required to determine their new monthly target payments by engaging themselves in some important calculations. All this only makes the procedure complicated and confusing apart from being rigorous. As a result, when you are considering applying for the HARP plan, it could be desirable to seek help from a mortgage expert.

Today many firms on the internet offer free mortgage refinance advice to guide borrowers in understanding the eligibility guidelines and process requirements that apply to HARP. Such agencies employ specialists who have knowledge, skills and experience to help home makers in analyzing their suitable alternatives under the government mortgage relief schedule. However, to choose the right option for your peculiar financial situation, you need to make sure that the service you have chosen is reliable and reputable.

To get more valuable information on your federal making home affordable program options online, it"s suggested to visit Refinanceitt.

by: Susan Hudson

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